Kansai Paint (4613) investor relations material

Executive summary

• Net sales for the nine months ended December 31, 2025, were JPY 442.4 billion, down 0.5% year-over-year, with strong performance in the automotive segment, especially in Japan and India, and significant contributions from Africa.

• Operating profit was JPY 39.0 billion, down 0.6% year-over-year, mainly due to increased fixed costs.

• Ordinary profit increased 8.6% year-over-year to JPY 45.4 billion, driven by higher foreign exchange gains.

• Profit attributable to owners was JPY 30.0 billion, down 8.9% year-over-year, impacted by the absence of prior-year extraordinary gains.

• Transformation initiatives, such as the "True Colors" program in Europe and structural reforms in Africa, are driving growth opportunities.

Financial highlights

• Gross profit for the period was JPY 143.4 billion, up from JPY 140.3 billion in the prior year.

• EBITDA rose 2.9% year-over-year to JPY 63.4 billion, with an EBITDA margin of 14.3%.

• Comprehensive income dropped 26.8% year-over-year to JPY 31.2 billion.

• Basic earnings per share for the nine months was JPY 170.21, compared to JPY 140.75 in the prior year.

• Total assets increased to JPY 786.3 billion as of December 31, 2025.

Outlook and guidance

• Over 75% progress achieved for sales and all profit levels against full-year forecasts.

• Full-year net sales forecast for fiscal year ending March 31, 2026, is JPY 590.0 billion, up 0.2% year-over-year.

• Operating profit is projected at JPY 51.0 billion (down 2.0%), ordinary profit at JPY 55.0 billion (up 12.0%), and profit attributable to owners at JPY 34.0 billion (down 11.2%).

• Planned annual dividend for FY2025 is 110 JPY per share, with a payout ratio of 61.9%.

• No change in dividend outlook; no large-scale M&A planned during the current mid-term plan.